$1,000 in QQQ Could Turn Into $10 Million

While the headline may sound unbelievable, it's no joke. A $1,000 investment in the Invesco QQQ Trust ETF (NASDAQ: QQQ) could indeed turn into $10 million. That said, this is not a get-rich-quick scheme, and you will need two aids in getting there: time, and a disciplined dollar-cost-averaging strategy.

A $1,000 investment in the Invesco QQQ Trust ETF that you just let sit there won't turn into $1 million, let alone $10 million, unless you have a very, very long time horizon. In fact, if you invested $1,000 in the exchange traded fund (ETF) 10 years ago, you'd have just over $5,000 today. That's not bad, but it's very far from $10 million.

Instead, what you'd need to do is invest $1,000 consistently every month in the ETF. The fund (as of the end of May) has generated an average annual return of 17.7% over the past 10 years and 18.1% over the past five years. If you invested $1,000 a month in the Invesco QQQ Trust ETF and saw a similar rate of return for about 30 years, you'd have around $10 million.

Continue reading

Source Fool.com